ADMINISTRATIVE PROCEEDING
File No. 3-11288

On September 30, 2003, the Securities and Exchange Commission ("Commission") issued an Order Instituting Public Administrative Proceedings Pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934 ("Order") against Rodney L. Hinkle ("Hinkle"), of Jupiter, Florida based on the entry of a Final Order to Cease and Desist/Order of Permanent Bar ("Final Order") issued against Hinkle by the Commissioner of the Securities Division, State of Maryland, Office of the Attorney General ("Maryland Division"). This is the first enforcement action brought pursuant to Section 604 of the Sarbanes-Oxley Act which, among other things, authorizes the Commission to censure or restrict associated persons of broker-dealers who are subject to any final order of a State securities commission that bars such persons from engaging in the securities business. Pursuant to the Final Order, the Maryland Division barred Hinkle from engaging in the securities business in Maryland, among other things.

In the Order, the Division of Enforcement ("Division") alleges that on June 17, 2003, the Maryland Division issued the Final Order against Hinkle and two of his companies based upon Hinkle's violation of a Consent Order it had issued against him on June 12, 2000, as well as violations of the Maryland Securities Act. In the Matter of Rodney L. Hinkle, Money Systems, LLC and Energy Resources, Inc., No. 2002-0422 (June 17, 2003). The Division further alleges that according to the Final Order, the Consent Order found that Hinkle had engaged in the fraudulent sale of unregistered securities and ordered, among other things, that Hinkle permanently cease and desist from certain securities law violations and be barred from the securities and investment advisory business in Maryland for four years. Moreover, the Division alleges that, as set forth in the Final Order, the Maryland Division found that Hinkle used false representations and promises to sell securities to investors in Maryland and elsewhere, and that he committed this conduct in July 1997, while still associated with Multi-Financial Securities Corporation, a registered broker-dealer, and from approximately January 2000 to May 2001, at which time he was no longer associated with a broker-dealer.

The Division alleges that in the Final Order the Maryland Division found that Hinkle violated the terms of the Consent Order as well as the Maryland Securities Act and permanently barred Hinkle from the securities and investment advisory business in Maryland, ordered that he cease and desist from further violations of the Maryland Securities Act and from further violations of the Consent Order, and that he pay a monetary penalty of $100,000.

A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, to provide Hinkle an opportunity to dispute these allegations, and to determine what sanctions, if any, are appropriate and in the public interest. The Commission directed that an administrative law judge shall issue an initial decision in this matter within 210 days from the date of service of the Order Instituting Proceedings.

The Commission acknowledges the assistance of the State of Maryland, Office of the Attorney General, Securities Division.